Categories

Sanibel real estate blog: What? No mortgage payment?

A new mortgage program, created about 4 years ago by the FHA called HECM is being used in Myrtle Beach, S.C. with success. You have to be 62 years old and have a down payment of 30%-50% but you will have no mortgage payments. The down payment varies with age and older buyers have to pay less than younger buyers. It is essentially a reverse equity mortgage- meaning that the homeowner gets the equity out of the home before they die. When they do, heirs or the sale of the home satisfy the loan.

Pretty interesting!While we haven’t had any buyers do this for Sanibel real estate, we are told there are banks that are willing to do these HECM loans in the Lee County area. Just google: HECM and Lee County and you should pull up some local lenders that can handle the loan.